1. FDI, the pain-killer: Additional capital infused into the economy promotes volume of transactions not happening because of domestic capital blocked by an archaic financial system. The same development can be brought about by administering an equally efficient investments procedure for internal/domestic investment proposals. Taxes should be brought down to promote volumes of transactions.
2. Discourage foreign ownership. Engage SEBI and corporate chambers of commerce to suggest guidelines for framing policies on more lucrative exit-options for FDI. The aim should be to de-link ownership and investment for returns, both in equity and in debt-instruments. The long-term economic benefits are higher since the earnings feed into the internal multiplier (which is higher for domestic investments), rather than remitted to original foreign source.
